Clustering Approach for Agroenterprise Development

1. R1.1: Orientation for SWG Clustering Approach for Agroenterprise Development Orientation for SWG: Farming Profitably through Agroenterprise Farmer Alliances for Resource-Strengthening and Marketing (FARM) Project

2. New approach in farmer’s dev support Farm Markets + Requires a shift: Production focus ---- production plus market approach (agroenterprise)

3. AGROENTERPRISE Farm Markets + • Empower organized farmers with knowledge & skills to participate in the marketplace • Assist them to build their own businesses (agroenterprises), capture more “value” in the value chain, increase incomes and improved farming livelihoods.

4. Production Focus (yields, surplus) Value Chain Approach (sales, income, investment)

5. Coffee Value Chain

6. Coffee and Rice Marketing

7. How do we get farmers included in the value chain? Higher Value Markets IN? Opportunities OUT? • New mindset – from production oriented to market oriented • Partners to help create the supporting environmentthat promote changes at the farmer and community level (technology, infra gaps, capital, trainings) • Organizing farmers for business – from individual to collective marketing; with business partnerships • Building knowledge & skills in AE Small Farmers • Challenges • Problems • Constraints

8. Clustering Approach: The Farmers’ Process for Market Preparation and Engagement) 8 Sustaining the Enterprises 1 7 Site Selection, Partnership Building and Formation of Working Group Test Marketing 2 6 Product Supply Assessment and Product Selection Production / Product Supply Organizing 5 3 Business Planning & Mobilization Market Chain Study 4 Cluster Organization

9. MARKETS SWG LGU/MFI/NGO/ Academe Cluster Leaders Cluster Leader Cluster Leader Cluster Leader Cluster Leader The Clustering Approach Highlight: The innovative method of organizing farmers into small groups called “clusters” where the enabling process for market preparedness & engagement takes place.

10. Agroenterprise is a farmers’ process. • 1. Our role is to be facilitators in the agroenterprise development • process, walking the farmers through the 8 step clustering • approach where farmers learn how: • the market works • to be effectively organized for business • to use basic financial and business skills for success • 2. For success, farmers must be willing • to also commit to their responsibilities; • to attend meetings and trainings • to be organized and to consolidate their products for • the collective marketing • use their own resources to improve their product and markets Thank you.

11. Clustering Approach for Agroenterprise Development Step 1: Partnership Building and the Formation of the Site Working Group

12. The Clustering Approach to Agroenterprise Development 8 Scaling-up 1 7 Site Selection, Partnership Building and Formation of Working Group Test Marketing New Products, New Markets 2 6 Product Supply Assessment and Product Selection Production/Product Supply Organizing New Farmers 3 5 Business Planning and Mobilization Market Chain Study 4 Cluster Organization

13. What is the Step 1? It is the process where: • The project site is identified (if it is not yet pre-selected in the project) • A site working group (SWG) is organized to support the agroenterprise • Basic clusters are formed; cluster leaders are identified and become part of the SWG • A local research team (LRT) is organized for the data gathering in Step 2 and 3

14. Step 1 – Facilitator’s Process Guide

15. Why form a SWG? The SWG is a local resource group that brings together the support of local institutions with farmer leaders towards agroenterprise development of small farmers in the community. The SWG is the local partnership that helps create the supporting environment for the agroenterprise of the farmers.

16. How do we get farmers included in the value chain? Higher Value Markets IN? Opportunities OUT? • New mindset – from production oriented to market oriented • Partners to help create the supporting environmentthat promote changes at the farmer and community level (technology, infra gaps, capital, trainings) • Organizing farmers for business – from individual to collective marketing; with business partnerships • Building knowledge & skills in AE Small Farmers • Challenges • Problems • Constraints

17. Composition of the SWG • A SWG may be composed of representatives from the LGU, NGO, MFI, local academe, and farmer leaders. • To ensure the representation of farmers in the SWG, at least 50% of the SWG composition is comprised of the cluster leaders. • Members of the SWG should meet at least once a month to discuss updates and coordinate activities.

18. Analyzing PSA results and making a PSA report. After PSA, farmers should be able to assess their strength or capacity to supply the identified products, as well as identify the critical weaknesses or constraints that need to be addressed with the needed development intervention``ns (government and private and or discussion in the SWG). These constitute the main highlights of a PSA report. San Jose Working Group LGU - AE Field Facilitator MFI City Coop Farmer Farmer LGU - MAO Farmer Resource Persons

19. LGU • Chairs the SWG and convene monthly meetings. Provide secretariat support. • Dedicate a technical person (from Agriculture Office) who will act as the agroenterprise field facilitator. • Make available the services of various offices of the local government (Coop Office, Economic Enterprise Office, Planning Office) needed in the effective implementation of the project. • Provide financial support for the organizing and training of farmers to ensure project success.

20. MFI • Extend financing assistance in the form of loans, as needed, so the agroenterprise has a financial resource base. • Assign a staff who will be participating in the SWG. • Assign a staff who will be participating in the SWG, and will support the LGU designated agroenterprise field facilitator. • Provide counterpart funding for the organizing and training of farmers.

21. Local Academe • Assist in the project monitoring and evaluation activities – profiling of participating farmers, data gathering (at project start-up and at year-end), focused group discussions with stakeholders, impact studies, etc. • Support the development and conduct of the training programs for farmers – preparation of the IEC materials, available resource, etc. • Extend research and policy advocacy support in technology improvements/innovations that will enhance farmers’ productivity and market competitiveness

22. The first task of the SWG: Assistance in the data gathering for the agroenterprise plan - It forms a Local Research Team (LRT) for this purpose.Composition of LRT: LGU, MFI/NGO, academe, 2 farmers Agroenterprise Plan Product Supply Assessment (Step 2) Market Chain Study (Step 3)

23. Thank You

24. Project Site Selection • The site can be a sitio, barangay, municipality, or a combination of each. • The site can be pre-identified among existing project sites, or on the basis of donor preferences. • Ideally, the agroenterprise project site has: • Willing producers & surplus products • The presence of potential partners or related projects in agriculture and community development • A responsive local government • The presence of good extension services • Favorable social conditions (e.g. peace & order)